Insiders probably made the right decision selling US$2.7m worth of shares earlier this year as 1-800-FLOWERS.COM, Inc.'s (NASDAQ:FLWS)) stock dips by 21%.

Simply Wall St
May 02, 2022
Source: Shutterstock

Over the past year, insiders sold US$2.7m worth of 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS) stock at an average price of US$32.76 per share allowing them to get the most out of their money. After the stock price dropped 21% last week, the company's market value declined by US$172m, but insiders were able to mitigate their losses.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for 1-800-FLOWERS.COM

1-800-FLOWERS.COM Insider Transactions Over The Last Year

The Senior VP of Finance & Administration, William Shea, made the biggest insider sale in the last 12 months. That single transaction was for US$1.6m worth of shares at a price of US$32.16 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$10.20. So it may not shed much light on insider confidence at current levels.

In total, 1-800-FLOWERS.COM insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqGS:FLWS Insider Trading Volume May 2nd 2022

I will like 1-800-FLOWERS.COM better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

1-800-FLOWERS.COM Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at 1-800-FLOWERS.COM. Independent Director Leonard Elmore purchased US$14k worth of shares in that period. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Does 1-800-FLOWERS.COM Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that 1-800-FLOWERS.COM insiders own 48% of the company, worth about US$321m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The 1-800-FLOWERS.COM Insider Transactions Indicate?

We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of 1-800-FLOWERS.COM insider transactions don't fill us with confidence. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that 1-800-FLOWERS.COM is showing 3 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.